Dilip Pendse, former managing director of Tata Finance, was arrested by the New Delhi police on Tuesday for his alleged involvement in misappropriation of Rs 2 crore (Rs 20 million) in a group company.

The arrest comes a day after the Delhi high court rejected his anticipatory bail plea in the case.

Delhi Police's Crime Branch sleuth nabbed Pendse in New Delhi area in the afternoon, Joint Commissioner of Police (Crime) U K Katna said.

The crime branch had registered a case against him in September last year and initiated investigations against Pendse on a complaint filed on behalf of Inshaallah Investment Ltd, a TFL subsidiary, alleging that the former managing director had issued cheques worth Rs 2 crore to brokers for payment of personal transactions of a former TFL director.

A case of cheating, forgery, criminal conspiracy and misappropriation of funds of IIL was registered and a non-bailable warrant was issued against him recently.

Police, while opposing his anticipatory bail in the court on Monday, had stressed the need for his custodial interrogation, citing that former managing director's personal secretary had revealed that Pendse after resigning from the company had parted away with some important documents.

The Tata Finance Fiasco